Which of the Following Limits Shareholders' Ability to Bring Class

question 10

Multiple Choice

Which of the following limits shareholders' ability to bring class action suits against nationally traded companies?

• A) The Class Prohibition Act of 1997
• B) The Sarbanes-Oxley Act of 2002
• C) The National Securities Markets Improvement Act of 1996
• D) The Market Reform Act of 1990
• E) The Securities Litigation Uniform Standards Act of 1998

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Definitions:

Governmental Services

Services provided by the government to its citizens; these can include education, healthcare, and public safety.

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied based on the taxpayer's ability to pay, where those with higher income or wealth should pay more taxes.

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.